Date updated:02-17-2007
From Barron's 2-19-07:
"Generic competition for Biotech firms like Amgen and Genzyme drew a step closer Wednesday, when a bipartisan group in Congress introduced a bill to authorize Food and Drug Administration approval of generic biologic drugs. Traditional drugs have had 20 years of government-authorized generic competition, but there's been scarcely any competition for biologics -- those proteins or other fancy molecules typically made in cell cultures of genetically modified organisms. The lack of competition has enabled biotech companies to charge tens of thousands of dollars a year for treatments, creating lucrative businesses from even a small number of sick patients."
"So after Amgen's patents expire, the government and private insurers would love to see competitive pricing. In a Thursday conference call Sanford C. Bernstein biotech analyst Geoffrey Porges said: "Amgen is obviously the big target here."

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TEVA
Teva Pharmaceutic - $46.20
- -0.82%
- $46.49
From Barron's 2-19-07: "Backing the biogeneric bill from the get-go included the generic drug giant Teva Pharmaceutical (TEVA), which has been tooling up to make biogeneric drugs..."

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ESRX
Express Scripts - $64.29
- -0.25%
- $63.26
From Barron's 2-19-07: Other endorsers of the bill included "pharmacy benefit manager Express Scripts (ESRX), which released a study that said the country's annual savings from biogenerics could rise from $3.5 billion to $12 billion over the first ten years."

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NVO
Novo-nordisk A/s - $52.45
- 0.00%
- $51.88
From Barron's 2-19-07: "Human insulin made by genetically engineered critters is a low-hanging fruit, therefore, for the biogeneric ambitions of companies like Wockhardt, the Indian drug company. That's why vendors of recombinant human insulin like Novo Nordisk (NVO) have hightailed it into the sale of modified insulin products that improve upon the natural stuff."

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SHPGY
Shire Plc - $42.18
- +0.91%
- $42.14
From Barron's 2-19-07: "There already are potential challengers to the Genzyme and Amgen best sellers -- from Britain's Shire (SHPGY)... but those rivals have gone down the lengthy FDA approval process established for a biologics license application. The whole point of generic-drug regulation is to allow copycat versions of a proven drug to get to market more quickly."

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BIIB
Biogen Idec Inc - $52.32
- +2.79%
- $50.47
From Barron's 2-19-07: "Somewhat harder to knock off are the interferons, like those sold by Biogen (BIIB) and the anemia drugs Epogen and Aranesp sold by Amgen. But there's plenty of incentive for generic firms to try."

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AMGN
Amgen Inc. - $50.73
- +1.26%
- $50.40
From Barron's 2-19-07: The US govt, "under the Medicare program, spent over $3 billion on just three anemia drugs from Amgen (ticker: AMGN) in the fiscal year ended September 2005. So after Amgen's patents expire, the government and private insurers would love to see competitive pricing." "Somewhat harder to knock off are the interferons...but there's plenty of incentive for generic firms to try. Amgen's two red blood cell boosters kicked in nearly half of the company's $14.3 billion in 2006 sales..."

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NVS
Novartis Ag Basel - $39.80
- 0.00%
- $39.26
From Barron's 2-19-07 "Once biogenerics became law, the FDA would need a long time to draw up regulations...But it would also make the biogeneric game less competitive for those who can afford to play it. Those who've shown an interest include manufacturers like Novartis (NVS), Pfizer (PFE), Teva and Barr Pharmaceuticals (BRL), as well as pharmacy benefit firms like Express Scripts and Medco Health Solutions (MHS)."

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PFE
Pfizer Inc - $14.98
- 0.00%
- $14.98
From Barron's 2-19-07 "Once biogenerics became law, the FDA would need a long time to draw up regulations...But it would also make the biogeneric game less competitive for those who can afford to play it. Those who've shown an interest include manufacturers like Novartis (NVS), Pfizer (PFE), Teva and Barr Pharmaceuticals (BRL), as well as pharmacy benefit firms like Express Scripts and Medco Health Solutions (MHS)."
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